Bitcoin tumbled below the $100,000 milestone on Sunday, marking its first dip beneath that level in over a month. This downturn came amidst intensifying geopolitical tensions spurred by US airstrikes on Iran, as well as a sweeping market sell-off. The leading cryptocurrency slid about 4% to approximately $99,300, mirroring a broader market retreat that saw Ethereum’s value nosedive nearly 10%. Overall, the cryptocurrency sphere shed 7% of its value in a mere 24-hour span.
A Complex Web of Geopolitics and Economics
This latest Bitcoin slide wasn’t merely a tale of market dynamics—it’s wrapped in a complex geopolitical tapestry. The US’s strategic strikes on three Iranian nuclear sites followed a United Nations report accusing Iran of violating international nuclear agreements. Reacting to these developments, Israel launched its own offensive against Iran, triggering retaliatory actions. Amidst this backdrop, President Donald Trump took to social media, heralding the situation as a “HISTORIC MOMENT” for the US, Israel, and global stability. For more context on Iran’s strategic maneuvers, see Bitcoin Drops Below $100,000 as Iran Moves to Close Strait of Hormuz.
The timing of Bitcoin’s decline is notable, given its strong performance earlier this year. After Trump assumed office in January, Bitcoin surged past the $100,000 threshold in February, buoyed by executive orders favoring the crypto sector. Yet, this upward trajectory encountered turbulence in April due to new tariffs, which pushed Bitcoin to a low of nearly $75,000—the nadir for 2025. Despite these fluctuations, Bitcoin experienced a robust recovery in May, driven by Wall Street’s renewed interest via US exchange-traded funds (ETFs).
Forced Liquidations and Market Reactions
The recent geopolitical upheaval isn’t the only factor unsettling the financial waters. Iran’s threat to obstruct the Strait of Hormuz, a vital conduit for 20% of the world’s oil supply, has further rattled nerves. JPMorgan has warned that closing this chokepoint could catapult oil prices to $130 per barrel, potentially reigniting US inflation fears—possibly reaching 5%, a peak not seen since March 2023. This development is further analyzed in Bitcoin Price Crashes Below $100K as Iran Votes to Close Straits of Hormuz.
Interestingly, Bitcoin’s recent price movements have diverged from its touted role as an inflation hedge, showing a closer correlation with tech stocks. Kaiko’s data reveals an increased alignment with the Nasdaq, particularly as Bitcoin ETFs saw significant inflows. Yet, the momentum waned as the week closed, with institutional investment cooling from over $1.04 billion midweek to a mere $6.4 million by Friday.
On the technical front, Bitcoin’s dip below $99,000 sparked a wave of forced liquidations on derivatives platforms like Binance and Bybit. CoinGlass reports that more than $1 billion in crypto positions were liquidated in just 24 hours—an overwhelming 95% of these were long positions, underscoring the market’s precarious exposure.
A Market at Crossroads
As Bitcoin attempts to regain its footing, trading at around $101,300 late Sunday, the market remains on edge. Ethereum, having clawed back some losses, was hovering near $2,200, yet the broader sentiment remains cautious. The question looming large: Can Bitcoin maintain its status as a hedge against economic instability, or will it continue to mirror the volatility of traditional equities?
The coming weeks will be crucial as investors digest these multifaceted developments. The interplay between geopolitical maneuvers and economic policies will likely shape Bitcoin’s trajectory in the latter half of 2025. As the crypto community braces for potential disruptions, the resilience of Bitcoin and its peers will be tested in an arena where global politics and market forces collide.
In the midst of such uncertainty, one thing is clear—Bitcoin’s journey remains as unpredictable as ever, leaving analysts and investors alike to ponder its next move.
Source
This article is based on: Bitcoin Crashed Below $100,000 Amid US Airstrikes On Iran And Market Sell-Off
Further Reading
Deepen your understanding with these related articles:
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- Bitcoin Price Holds Steady Amid Iran Conflict Fears
- Bitcoin Price Slips Below $100K, Hinting Oil-Led Risk-Off on Wall Street
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
